Wesfarmers Limited and Sociedad Quimica y Minera de Chile S.A. (SQM) have given the green light to a major expansion of the Mt Holland lithium project, paving the way for a significant increase in spodumene concentrate production and stronger long-term Cash generation.

 

The joint venture partners have approved the final investment decision for the expansion of the integrated lithium operation, which includes the mine, concentrator and a new ore sorting facility designed to unlock additional production from existing stockpiled material.

 

Covalent Lithium, the Wesfarmers-SQM joint venture company, has completed a definitive feasibility study showing the expansion will double nameplate spodumene concentrate production from around 380,000 tonnes per annum to approximately 760,000 tonnes per annum on a 100 per cent basis.

 

The new ore sorting facility will further boost output by recovering stockpiled material previously considered unsuitable for processing, adding an estimated three million tonnes of spodumene concentrate production over the life of the operation.

 

Construction of a second concentrator is expected to begin in the second half of calendar year 2027, with first spodumene concentrate from the expansion targeted for the first half of calendar year 2030.

 

Wesfarmers’ share of capital expenditure is estimated at between $645 million and $715 million (USD $450 million to $500 million) in nominal terms, excluding capitalised interest. The investment will be funded through existing cash and debt facilities, with key government and regulatory approvals either secured or progressing.

 

The expanded production is expected to be sold as spodumene concentrate, while also providing future flexibility to support potential downstream processing growth at Covalent Lithium’s Kwinana refinery.

 

Wesfarmers Managing Director Rob Scott said the expansion would strengthen Mt Holland’s competitiveness by leveraging existing infrastructure and increasing operational scale.

 

“Mt Holland is a world-class, integrated lithium business and this expansion improves its position on the cost curve,” Scott said. “The expansion of Mt Holland will deliver an attractive return on capital for Wesfarmers shareholders, enabling us to meet strong demand for high quality product and will enhance the resilience of the business through commodity price cycles.”